BYD expands European presence with new Hungarian factory

Chinese automaker BYD is expanding its European presence with a new production facility in Szeged, Hungary. The plant, representing an investment of approximately 4 billion euros, is expected to have an annual capacity of 300,000 vehicles and aims to begin production by the end of the year.

BYD's sales in Europe have increased by 150% in a single year. This growth, alongside other Chinese brands like Xpeng, Geely, Leapmotor, and Jaecoo, is increasing competitive pressure on established German manufacturers such as Volkswagen, BMW, and Porsche. In some European markets, the market share of Chinese brands is significantly higher than in Germany.

Broadly, the European electric vehicle (EV) market is seeing significant growth. Data shows that between January and July 2026, fully electric car sales increased by 37% compared to the same period last year. In July alone, electric models accounted for 25% of new vehicle registrations in the region, totaling approximately 277,000 units. This trend is driven by high fuel prices and a wider variety of available EV models, ranging from compact cars to SUVs. Notably, the Skoda Elroq was the top-selling electric model in July, followed by the Volkswagen ID.4 and Renault 5 E-Tech.